Red Sea Tanker Attacks Ignite Energy Market Volatility

Brent crude futures climbed 2% to $96 a barrel, marking a six-week high, as the U.S. military launched its 12th consecutive night of strikes against Iranian targets. The violence follows a declaration from President Donald Trump, who vowed to destroy Iranian infrastructure—specifically bridges or power plants—for every attack on shipping within the Strait of Hormuz. Tehran has countered with an "eye for an eye" doctrine, with Foreign Minister Abbas Araghchi warning that any aggression against Iranian infrastructure would trigger a decisive military response.

Energy markets are reacting to a potential collapse of transit security in the region. The Revolutionary Guards reported an explosion on a tanker near a mined route south of the Strait of Hormuz, forcing other vessels to retreat. Amid this instability, the U.S. House of Representatives approved a $95 billion budget framework, a significant portion of which is designated for Pentagon operations in the ongoing conflict. As the dollar stabilizes against the backdrop of rising inflation fears, investors remain on edge, bracing for further disruptions to global oil flows.